The second of the above notes is an example of a noninterest bearing, demand note.

Exercise 57

1. Who must pay the first of the above notes when it becomes due? Who is to receive the money? How much is to be paid?

2. Write a note having James Gallagher as payee, William Hawley as maker, principal $500, rate of interest 6%, time 30 days. Compute the interest and the sum the payee receives when the note is due.

3. Suppose that you buy a horse for $135 from one of your classmates and that, instead of paying cash, you give your note due in six months and bearing 7% interest. Write the note which you would give and compute the amount to be paid.

4. Who is the payee of the note of example 3? Who is the maker? Who writes the name of the payee? Of the maker? In how many places on the note is the amount to be paid written? What is the meaning of the words "for value received" in a note?

Write notes for the following and compute the amount to be paid to the payee.

5. Principal, $250; time, 90 days; maker, William Jennings; payee, John K. Adams; rate, 6%.

6. Principal, $4500; time to be paid, Jan. 1, 1927; time the note is dated, Dec. 1, 1925; payee, A. N. Collins; maker, Arthur Donley; rate, 51%.

7. Write a demand note payable to yourself for the sum of $1500 with George Marsh as maker.

8. Who holds each of the above notes? Who pays each? Who gets each note after it is paid?

55. To find the principal, rate, or time.

30=2X3Xwhat number?

63=3X7X what number?

54 3X3Xwhat number? 105=5X3X what number?

If you are told the product of three factors and two of the factors, how can you find the third factor?

Three numbers multiplied together give 90. Two of them are 6 and 3. What is the other?

$12-$100X.06×? $15-$?X.06×5.

$14.50

$100×.07×? $47.25 $?X.07X1.

The interest formula tells you that the interest is the product of three factors-principal, rate, and time. If you are told the interest on a certain principal at a certain rate, how can you find the time?

Make a formula for finding the time when the interest, principal, and rate are given.

Make a formula for finding the rate when the interest, principal, and time are given.

Make a formula for finding the principal when the interest, rate, and time are given.

Exercise 58

Find the missing numbers below, using these formulas:

Exercise 59. Review of Interest

Solve as many of these examples without pencil as you can. 1. What is the interest on $100 for 1 year at 3%? On $100 for 2 years at 6%? On $600 for six months at 8%?

2. Find the interest on $200 for 12 days at 6%; on $500 for 15 days at 6%; on $450 for 2 months 18 days at 6%. 3. State the formula for finding interest.

4. If you know the interest on a sum of money for 1 year, how can you find the interest for 3 years? For 6 months? For 1 month? For 10 days?

you

If know the interest on a sum of money for a certain time at 4%, how can you find the interest for the same time at 2%? At 3%? At 8%? At 5%?

6. Express as days, 1 yr. 1 mo. 1 da. ; 7 mo. 10 da. ; 2 yr. 5 mo. 12 da.

7. Express each of the time periods of the preceding example as months; as years.

Solve each of the next three examples by the formula method, then by the six per cent method, and decide which is the easier for each example.

8. Find the interest on $240 at 8% for 1 yr. 8 mo. 12 da. 9. Find the interest on $25 at 5% for 5 mo. 10 da. 10. Find the interest on $4980 at 7% for 2 yr. 10 mo. 11 da. 11. Find the time between June 17, 1775, and July 4, 1776, by subtracting the dates.

12. Find the exact number of days between August 1, 1922, and May 1, 1923.

13. A farmer's net income from his farm of 80 acres is $575. At what price per acre shall his farm be valued so that this income shall be 5% interest on the value of his farm?

14. In estimating the cost of growing an acre of wheat, an allowance of $4.464 was made for interest and taxes. The

land was valued at $62 an acre. One and one-half per cent of the value was allowed for the taxes. What per cent was allowed for interest?

The house

15. You are offered a house and lot for $4200. is rented for $30 a month. The repairs will probably amount to $40 a year and other costs to $35 a year. If you buy it, what per cent per annum will it yield on your investment?

16. A Liberty Bond is equivalent to a promissory note made by the United States Government. These bonds bear 41% interest per annum on the face of the bond, which is the price at which they were sold by the Government. What is Mr. Snyder's income on the 15 fifty-dollar bonds which he owns?

17. A real-estate dealer bought a lot for $750 on April 12, and sold it on December 23 for $900. On the day he sold this first lot he bought a second lot for the $900. This lot he sold on the following June 12 for $1100. What rate of interest per annum did he make on his original sum of money?

18. A retail merchant bought a bill of goods for $1275. If he had paid cash, he would have been allowed a discount of 3%. Instead, he gave his note for the $1275 bearing 6% interest to run 9 months. How much would he have saved by borrowing the money needed to pay cash for the bill, paying 7% interest per annum for the 9 months?

19. By buying his coal in July Mr. Barclay paid $5.35 a ton for it. If he had waited until January to buy it, he must have paid $7.15 a ton for it. What rate of interest on his money did he get by buying in July?

20. A certain piece of furniture may be bought for $36 cash or on the installment plan for $3.50 at the end of each month for 12 months. Not considering interest due on the installments paid, what rate of interest on the cash price is being paid by one who buys this furniture on the installment plan?

CHAPTER VII

MEASUREMENT OF LINES

56. Line segments. The part of A the straight line between the points A and B in this figure is called a

B

FIG. 2.

line segment, or simply a segment. It is read AB. A line segment is sometimes referred to as a line.

The ruler, or other straightedge,

is used in drawing straight lines. The ruler is also used in measuring distances.

The compasses are used in drawing circles and in marking off lines equal to given lines.

FIG. 3.

Exercise 60

1. Draw a line segment equal to the line segment AB in Figure 2.

HINT. Measure the length of AB on a ruler and then draw a line segment of the same length.

2. Draw a segment whose length equals the length of this page.

3. Draw a segment 3 in. long.

4. Open the compasses a distance of 1 in. as marked on the ruler. This means that the feet of the compasses, x and y in Figure 3, shall be 1 in. apart.

5. Open the compasses a distance of 2 in.; of in. ; AB, Figure 2.

of